What is the ruling on purchasing gold using an automated cash exchange machine?
Machine translationRead the Arabic original
The questioner : Peace be upon you and Allah's mercy.
The Shaykh : And upon you be peace and the mercy of Allah.
The questioner : Your Eminence, these days automated cash exchange machines provided by banks for their customers to facilitate cash withdrawals have become widespread. Also, this service has started to spread in commercial establishments and gold shops. Is it permissible to purchase in this manner?
The Shaykh : What do you mean?
The questioner : I mean: it appears that gold shops are engaged in barter, and there is no hand-to-hand exchange of cash for cash?
The Shaykh : Yes, as for gold, hand-to-hand exchange is necessary, but I want to know about this exchange?
The questioner : The customer is given a card
The Shaykh : Yes
The questioner : and inserts it into the machine and requests cash.
The Shaykh : Yes, well, if he is requesting cash, then it is cash. For example, if the customer who bought gold from a person, yes, withdrew it while he was present at the location, at the gold shop, and withdrew it and gave it to the seller, then there is no harm in that.
The questioner : No, the method now with these machines becomes barter through the Monetary Authority.
The Shaykh : Very well.
The questioner : It is withdrawn from his balance and placed in the balance of the shop owner, the owner of the shop...
The Shaykh : Without.
The questioner : Without taking possession?
The Shaykh : What is this card that you say withdraws?
The questioner : Except that these are new machines now, so it becomes barter immediately through the Monetary Authority.
The Shaykh : Without taking possession?
The questioner : Without taking possession, there is no taking possession.
The questioner : ... then it becomes barter.
The Shaykh : I mean, does the computer read what is in it?
The questioner : Yes, it reads what is in it.
The Shaykh : Then after that, it transfers?
The questioner : Yes, it transfers.
The Shaykh : This is not valid, as for gold or silver, it is not valid, because hand-to-hand exchange is necessary. But in other things, there is no harm. For example, if I bought from this shop, for instance, a commodity for five thousand riyals and inserted this card, and it was recorded to my account, in things other than gold and silver, there is no harm. But as for gold and silver, no, because hand-to-hand exchange is required in them, so it is necessary that you withdraw the money and then give it. And I hear that you come, for example, to a bank branch or Al-Rajhi and insert this paper and money comes out for you, that is good.
The questioner : But now these new machines in commercial establishments such that cash is not needed.
The Shaykh : In any case, this is good and provides convenience, but as for gold and silver, it must be done in the first manner.
The questioner : Well, what about one who did this out of ignorance?
The Shaykh : One who did this out of ignorance should repent to Allah and not return to it. I mean, if a person used this for gold and silver and he did not know, then there is no sin on him, and the transaction is valid, yes.
The Shaykh : And upon you be peace and the mercy of Allah.
The questioner : Your Eminence, these days automated cash exchange machines provided by banks for their customers to facilitate cash withdrawals have become widespread. Also, this service has started to spread in commercial establishments and gold shops. Is it permissible to purchase in this manner?
The Shaykh : What do you mean?
The questioner : I mean: it appears that gold shops are engaged in barter, and there is no hand-to-hand exchange of cash for cash?
The Shaykh : Yes, as for gold, hand-to-hand exchange is necessary, but I want to know about this exchange?
The questioner : The customer is given a card
The Shaykh : Yes
The questioner : and inserts it into the machine and requests cash.
The Shaykh : Yes, well, if he is requesting cash, then it is cash. For example, if the customer who bought gold from a person, yes, withdrew it while he was present at the location, at the gold shop, and withdrew it and gave it to the seller, then there is no harm in that.
The questioner : No, the method now with these machines becomes barter through the Monetary Authority.
The Shaykh : Very well.
The questioner : It is withdrawn from his balance and placed in the balance of the shop owner, the owner of the shop...
The Shaykh : Without.
The questioner : Without taking possession?
The Shaykh : What is this card that you say withdraws?
The questioner : Except that these are new machines now, so it becomes barter immediately through the Monetary Authority.
The Shaykh : Without taking possession?
The questioner : Without taking possession, there is no taking possession.
The questioner : ... then it becomes barter.
The Shaykh : I mean, does the computer read what is in it?
The questioner : Yes, it reads what is in it.
The Shaykh : Then after that, it transfers?
The questioner : Yes, it transfers.
The Shaykh : This is not valid, as for gold or silver, it is not valid, because hand-to-hand exchange is necessary. But in other things, there is no harm. For example, if I bought from this shop, for instance, a commodity for five thousand riyals and inserted this card, and it was recorded to my account, in things other than gold and silver, there is no harm. But as for gold and silver, no, because hand-to-hand exchange is required in them, so it is necessary that you withdraw the money and then give it. And I hear that you come, for example, to a bank branch or Al-Rajhi and insert this paper and money comes out for you, that is good.
The questioner : But now these new machines in commercial establishments such that cash is not needed.
The Shaykh : In any case, this is good and provides convenience, but as for gold and silver, it must be done in the first manner.
The questioner : Well, what about one who did this out of ignorance?
The Shaykh : One who did this out of ignorance should repent to Allah and not return to it. I mean, if a person used this for gold and silver and he did not know, then there is no sin on him, and the transaction is valid, yes.